Can Customs still be transformed?

We need every peso that can be collected from all the taxable imports and exports that pass our ports. The total funds collected is the lifeblood of the government, the vital source of any nation’s survival and progress. The more funds that our national treasury have, the stronger is the capacity of any administration to pursue development projects and maintain the basic operations of government.

On the other hand, less funds means lower chance to become progressive. And lower capability to support any meaningful initiative that can uplift the lives of our people. Therefore, collection efficiencies are paramount in order to get the maximum possible funds that is due to the government.

Leakages such as those lost to corruption, smuggling where illicit modus and techniques pave the way to cheat the government and mere lack of competence to protect the interest of our nation all contribute to the losses in the much-needed funds that we are supposed to use. Less funds also translates to resorting to availing ourselves of loans, both from international and local financial institutions, to remedy the funding gaps in our national budget. Being heavily indebted in relation to our Gross Domestic Product breeds other issues. Our national debts have ballooned to more than P17 trillion.

Hopefully, collecting well and in full shall prevent us from borrowing more. And at the helm of doing this task is the Bureau of Customs (BOC). However, this agency has been plagued by reports of malpractices, corruption and inefficiencies. These reports, coupled with countless horror stories from the stakeholders, have put the BOC in a difficult defensive position that confidence in its capacity to collect well is nil. Public perception of the agency ranges from bad to worse. So, the big concern is whether or not BOC can still be transformed into a modern institution that is free from corruption and is able to fully collect the duties and taxes from all imports and exports in the country.

Digital solutions are availableand must be utilized

We must adopt the technology that can resolve the issues in the BOC. In other words, we must immediately resort to technology-based solutions in addressing the age-old issues that tolerated or even encouraged infractions and malpractices in the bureau.

A Customs Processing System (CPS) must be rolled out soon. In this, submission of import documents, valuation, computation of duties, taxes and fees, payments up to releasing of cargoes must be 100 percent automated and digital. In other words, there will be less need for human participation and intervention in Customs payment processes. Just like when you’re using the ATMs of banks, you just press the buttons for the desired transactions and finish the process without the need to discuss and interact with bank personnel. And the only time that you’ll require somebody to talk to is when there’s a problem that prevented you from having a successful transaction.

Scanning or Xray machines must be updated; relieve the old machines

Crucial in preventing smuggling is the deployment of modern scanning machines that can see the actual imports even if inside steel containers. Millions of 20-foot equivalent or TEUs enter and leave the country. We have to be sure that inside these containers are the exact items that the importers or exporters have declared in their documents.

What is listed in the declarations or applications must definitely be consistent with what the scanning machines capture. Otherwise, any difference shall be an obvious attempt to smuggle. Hence, BOC must replace its old machines with new and modern ones in order to ensure that smuggling is prevented.

Pre-shipment surveys must also be extended and used before bringing in imports. The bureau must require importers to use third party surveyors such as SGS, Intertek and other globally recognized service providers. These surveyors will digitally submit to BOC, in advance, on what exactly are the values, volume and description of the items being brought to the country. Therefore, this information cannot be altered. Computations of duties and taxes will be accurate.

Culture and mindset must be overhauled

Integrity cannot be legislated or forced. Honesty in doing our jobs is a matter of inherent principles and values. Either we have them, or we don’t. BOC needs full reformation. Patriotism, basic love of our country must be reinstalled and strengthened. This is the best shield against corruption.

There are many inside the BOC who also yearn to improve the bureau. But there are those who would rather maintain the current system where the welfare of our people can be disregarded. Therefore, this is a battleground between what’s clearly right or wrong. By using technology-based reforms, the battle can be won and ultimately transform this agency.

*      *      *

Email: arielnepo.philstar.com